Recurring profit, or net income excluding one-off items, plunged 14.2 percent to 1.518 billion reais ($755 million) from the prior three months, the bank said in a securities filing. Santander Brasil was expected to earn 1.33 billion reais in the quarter, according to an estimate of 10 analysts in a Thomson Reuters survey.

The profit came despite a surge in bad loan provisions and defaults and a decline in interest income. Late on Wednesday, the lender announced that it had appointed Jesús Zabalza as chief executive officer, replacing Marcial Portela Álvarez.